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Sunday, December 14, 2014

SRS Setup

SRS Setup Review

Hello Traders !

Today we are revisiting the SRS, explaining its rules and different Trade Setups that we can trade with it.

  • Classic Use with the Trend
  • Classic Use against the Trend
  • Alternate use on SRSx Setup

Lets start for the Begining : Trend Definition

On SRS we use an exponential envelope (DarkGolden lines) and an exponential moving average (Blue Line) to define the trend.
The Blue Line has a slower ( higher ) period than the Envelope, usually a number in the order of 50, 100 or 200.
The Envelope uses a faster ( lower ) period to follow the price.
Its size is fixed, and it should be big enough to keep the Blue Line inside while the Market is in sideways mode or changing the trend.
We can control the size of the sideways zone by changing the size of the envelope.

The trend has 3 possible states :

  • Trending Down ( Envelope is all below the Blue Line )
  • Trending Up ( Envelope is all above the Blue Line )
  • No Trend = Sideways ( Blue Line is inside the Envelope )

Once the trend is defined, then we use a Donchian Channel to define the Trade Ready Condition :

When the Bars are touching the Upper Donchian and the Trend is Down, then we have a Short Trade Ready Condition.
Those bars are shown on the following picture with Orange Diamonds.

The Trade Setup Entry is at N ( default = 3 ) ticks below the low of the Signal Bar, just where the Diamonds are located.
That means that for Manual Trading this setup we place a Sell Stop Order over the Diamond and keep adjusting the Entry Price as each new Diamond is painted.
On the example shown above, we have an entry on the 3rd and final diamond ; the order placed there gets a fill at the next bar.

On the last version of the TIS_SRS Indicator we have the option to hide or show the lines ( EMA, Envelope and Channel ), the Diamonds, to paint the Bars according to the Trend and also the option to place a Marker where there is an entry, to make this indicator compatible with the Markers System.

Trade Setup against the Trend

On the classic ( with the trend ) setup the blue line is slower than the envelope ( blue line period > envelope period ).
On the counter trend Setup we exchange its values, so the blue line is now faster than the envelope  
Following the same rules with the Donchian and using the same Entry Technique than before we can see that we get long signals at the bottom extremes and sell signals at the tops.

Again, we can trade this Setup Manually by placing Entry Stop Orders over the Diamonds.
Or Enter the Market when we get an Arrow. This can be automated with the Markers System.

SRSx ( Extreme ) Setup

This Setup uses the same method to define the trend bu the Entry Technique is different.
On this Setup we trade a Breakout. And the breakout is detected when the Blue line gets outside of the Envelope.

As we can see on the above picture, the Blue line is faster than the Envelope.
When the Blue line is above the Envelope, then the Trend is Up and we get Blue Bars.
If Market is making new highs ( detected through the Bars touching the Donchian ) then we have a Diamond.
The Entry is at Market ; as soon as we get a Blue Diamond we Enter Long. Usually the first signals per side are the best, so we should only enter one or 2 times per side.
To automate this Setup we can use the Markers System by targeting the Diamonds as Entry Signals. The price location of the Diamonds has no use on this Setup.
The period of the blue line here should be very fast. And the size of the Envelope, should be tuned to avoid the system to trigger signals when not impulsing or trending. ( see left and right part of the Chart )

Parameters of TIS_SRS for SRSx Setup ;

To be able to follow the SRSx Setup with the TIS_SRS Indicator we need to do some tweaks on the parameters as shown :

As we can see, the colors are inverted, the period of the blue line is really fast with a period of 2. The offset to place the Diamonds is negative so we get them on the other side of the Bar. On this example, using a Range 6 Chart (where all bars are 6 ticks tall) placing the Diamond at -9 is like placing it at 3 ticks from the opposite extreme.

Related Videos :

I will post here links to related videos using the last version of the SRS Indicator and the Markers System to show how to configure and use them to trade the different Setups.

Live Examples using the 3 different trade setups and automating the Entries with Markers 
Pablo Maglio

Saturday, September 27, 2014

New SRS Extreme Setup (SRSx) for Ninjatrader

New SRSx Strategy : SRS Extreme

This Setup is focused to volatile Markets where entering at a pullback is not an efficient solution.

Uses same logic as SRS to define the trend, so it has 3 states ( Neutral, Bullish and Bearish ) using and Envelope and a Moving Average.

On the classic SRS, when the fast ema crosses outside the envelope, we have a trend and start looking for an entry at a pullback.
On SRSx we just enter the Market :

On this example we can see the fast moving average ( blue line ) crossing below the envelope starting a new down trend ( red bars )

The classic SRS waits for a pullback and enters a Sell Stop Entry Order over the Orange Diamond :

On SRSx we enter the Market at first Red Bar.
Doing some minor changes on the classic SRS Input Parameters we can get this New Setup on our Charts :


On this YouTube video we can see how to create a Chart with the SRSx Setup using the SRS Indicator :

On this link you can get the SRS Indicator :
On this link you can get the Markers System :
Don't hesitate to ask or comment !

Good Trading !

Saturday, September 13, 2014

The Best System for Ninjatrader

PMS_Markers ; The Best System for Ninjatrader

Why better ? ...because it trades any logic ; you provide the logic !
Any indicator that produces symbols can be used together with PMS_Markers to trade its signals.

If you have an indicator that shows entries with any kind of symbol like arrows, dots, lines, etc, then with this system you can automate the process of entering trades.

PMS_Markers uses the logic described on TIS_Markers Indicator for Ninjatrader to detect markers drawn into a Chart.

Take a look at this YouTube Video for more info :

The system provides the Debug Mode to verify the settings of any Object Placed in the Chart.
We put that data into the PMS_Markers and then we just let the system trade the signals

Features of PMS_Markers 

  • Trade in Manual or Automatic Mode
  • Select Auto or Manual from the ToolBar
  • Use ATM Orders
  • Select ATM Name from the ToolBar
  • Enable Longs and Enable Shorts from the ToolBar
  • Money Management Option to Limit Max Daily Loss and Max Daily Profit
  • Time Window Option
New Features of Version 2.1

  • Addition of Exit Condition ( User can Specify an Object to Close Current Position )

  • Time Window can Work at Midnight ( Time Begin > Time Finish )
    Example ; to trade from 11 PM to 2 AM we can set
    Time Begin = 230000
    Time Finish = 20000
  • Easier Introduction of Object Filter Settings :
    Only 2 Conditions per Side are needed : Object Type and Color
    We can use advanced Settings like Text Contents or Tag Name by
    clicking on Advanced Settings :

    When using Text Objects, we can use Exact Match or “Contains” Match
    Example :
    With “Contains” a Text Object with the String “Go Long” will be detected by “Long”
    To avoid confusing “13” by using a filter=”3” we can use “Exact Match”
    When we look for text signals containing numbers it is convenient to use Exact Match.
  • Addition of Info Text on Chart to let the User know the System is not taking trades because it is outside of the Trading Window.
    Example :

  • Now the Orders are Persistent.
    That means that if the system has a position working and we need to refresh the chart add a new indicator modify the setting of other or even Markers Indicator
    the current position status will be remembered by Markers

    On previous version ( v2 and lower ) any refresh of the chart would cause Markers to forget its current Position and Orders Status, so, never closing the current position when a new signal or Close Time would require.
  • We added the option to set Markers on “Calculate at Bar Close = True” Mode.
    The normal use of the Markers System is on intrabar (false) ; so as soon the trigger object is detected, an entry order is issued to the Exchange.
    On some special situations, it may be useful to wait to the end of the current bar to send the Entry Order. On those cases, use the Option Calculate at Bar Close = True.

Please let us know your comments !

Pablo Maglio
Skype Skype id : pmaglio

Sunday, September 7, 2014

TIS_Markers Indicator for Ninjatrader

TIS_Markers Indicator for Ninjatrader

This indicator was designed to be placed on a Chart where other indicators are applied and showing useful Markers.
Most Indicators Show Trading Information via a Marker.

The most used Markers are :

Dots :

Diamonds :

Arrows :

Vertical Lines :

Other Markers :

Even More Available Objects :

All these Objects and Markers have several Variables that we can monitor ;

  • The Type of Object ; Dot, Diamond, Arrow Line, etc
  • The Color
  • The Tag ; each object on a chart has a unique name. We can double click on any object and review its properties on the "Data Tab"

  • On Text Objects we can also check at the Text Contents

With TIS_Markers we can Filter any Object placed by a Custom Indicator and generate a User defined Alert Sound.

These are the Input Parameters of TIS_Markers :

On this Example the Indicator is monitoring for an Arrow in any Color with the word "GoLong" in the tag. When it is detected, the audio file Alert2.wav is played.
It is also looking for any Red Text object displaying the word "Short" and with a Tag Name including the word "Sell"

There is an important parameter ; Lag_Max_Bars that determines how far the objects are drawn from current price action.
Example ; some indicator place their signal markers after several bars, so the markers looks great but on real time it is useless, so we can filter the signals drawn at a maximum number of bars from current price action.


This is the automation of the TIS_Markers Indicator and will allow to automate any Custom Indicator and convert it into a Strategy by Monitoring its Markers and placing ATM Orders in the Market.
Currently under development ( register for a pre-sale and get an important discount )
Estimated Release Date : Sept 24, 2014

Good Trading Everyone !

Skype Skype id : pmaglio

Thursday, May 8, 2014

Semi Automatic Systems for Ninjatrader

Semi Automatic Systems for Ninjatrader

Today we are going to cover in detail the Semi Automatic Systems features.

First of all, some definitions ;

... A Semi Automatic System is ...

  1. It is an Indicator that paints on the Chart a defined Setup.
  2. It also shows the Price Entry and sometimes there is also a visual and audio Alert
  3. Adds a Toolbar on the Chart with Buttons to Select Enable Long | Enable Short
  4. Some versions also add a Toolbar to select an ATM Name
As we can see, the points 1 and 2 are common on all our Setup Indicators

The main difference is on point 3 ;
A Semi Automatic System is an  Indicator that allows all to place Orders  in the Market

There is one important reason to use a Ninjatrader Indicator and not a Strategy, and this is because when we place a Strategy on a Chart, we can not use Chart Trader. If we can not use Chart Trader, then we can not see the orders on the chart.

A Semi Automatic System is an  Indicator  so we can use it on a Chart with Chart Trader enabled. From the Chart we can click on the corresponding Enable Trade Buttons and the system will wait for the next signal on the corresponding side and enter the market at the correct Entry Price using the User Selected ATM Order. On most advanced Automated Systems, we can also select the ATM name from the Tool Bar.

As we can see on the picture, the Indicator adds to the Tool Bar these options :
  • Title of the Setup ( SRS on this example )
  • Button to Allow Next Long Signal Entry
  • Button to Allow Next Short Signal Entry
  • Dialog Box to set the Name of the ATM to be used
There are 2 Modes of Use ; 
Semi Automatic
After a Fill, the Button gets disabled. So we need to click on it to take another Entry.
Buttons can be locked. The system will take all signals ( All Longs, All Shorts or All Signals )

Why using ATM ?
Each time the system issues an ATM Order, it released the management to the Ninja ATM Module as on manual placed Orders.
This way the User has full Control over the Orders.
As we Know, an ATM contains definitions about 3 different positions :

Each Position has its own Size, Stop, Target, Trailing Stop and Auto Break Even.
We can change any of the ATM definitions while the System is working without disabling it. The next order will use the new settings.

A Semi Automatic System can trade or auto trade ANY Setup ( User can choose from our list or define its own rules ) from Chart Trader using ATM Orders with all explained features plus....

Money Management Module
The user can define the Max Daily Loss and/or Max Daily Profit limits for the day.
After one of those limits are reached the system will not allow to take more trades.

Position Management Selection
It is possible to get a signal while the system is already in the Market.
The signal can be on same side or against our current trade.
The user has full control about how the system must proceed selecting the value of Position_Manage according to this table :

The System is Not Flat and we have a New Entry Signal :
Current Position vs Signal
1) Do Nothing
Same Sign
Different Sign
Original Position Remains
2) Enter New Trade
Same Sign
Different Sign
Increase Trade Size
Long & Short at same time
3) Close Current Position
Same Sign
Different Sign
Do not Apply
4) Close Current and Enter New
Same Sign
Different Sign
Do not Apply

On the following Video you can see an example of a Semi Automatic System :

As a reminder, 
  • Any Setup can be converted to a Semi Automatic System
    We recommend our Setups ; SRS, EMA, Reversal, Supertrend, ATRBC
  • A Semi Automatic System can work in Full Automatic Mode
  • A Semi Automatic System can work in Semi Automatic Mode ; the user must approve the Entry
  • The Orders ( Targets and Stops ) can be moved by the User
  • The user can define Daily Loss and Profit Limits for the Day
  • The User can define the behavior when having multiple signals.

Please let me know if you have any question or would like to get more info about converting your particular Setup to this format.

Best Regards,

logo Pablo Maglio The Indicator Store 
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